• Identify the terms used in deprecation, use the straight-line method of depreciation to find the amount in each year, find the book value of an asset, and dodepreciation schedule.
• Describe the declining-balance method of depreciation, find the double declining balance rate, use the same method to find the amount of depreciation and book value for each year, use the double-declining balance method to do a depreciation schedule.

Trader Joe's purchased freezer cases at a cost of $285,000. The estimated life of the freezercases is 5 years, at which time they will have no salvage value. The company would like tocompare allowable depreciation methods and decides to prepare depreciation schedules for the fixtures using the straight-line, double-declining-balance, and sum-of-the-years'-digits methodsof depreciation.

Answer the following questions.

• What is the book value at the end of 3 years using the straight-line depreciation method?
• Using the double-declining-balance method of depreciation, what is the book value at theend of the third year?
• With the sum-of-the-years'-digits method of depreciation, what is the accumulated depre-ciation at the end of 3 years?
• What amount of depreciation will be taken in year 4 with each of the methods?
• Identify a store or business with which you are familiar and list six of its depreciable assets.Examples could be such items as buildings, computer equipment, vehicles, and fixtures.Using the information on the MACRS method of depreciation, give the recovery period andthe first-year depreciation rate for each of the six depreciable assets you listed.